Effects of non-tariff barriers on Thai exports of key vegetables to ASEAN countries

Abstract

In the context of the ASEAN Free Trade Area, Thai exports of key vegetables have been affected by non-tariff barriers (NTBs) since 2010. This has led to the concern as to what extent such measures adopted by ASEAN countries have impacted the export of Thai vegetables. This study applied a gravity model under panel data where the estimates of a random effect model revealed that NTBs have caused damage to the export of root crops with a statistical significance of 0.01. On the other hand, a fixed effect model implied that NTBs were not the key trade barrier decreasing the export of Thai mushrooms to other ASEAN countries. Therefore, ASEAN should carefully reconsider NTB issues for the real benefit of farmers and consumers in the region in response to the Asian Economic Community (AEC) which was established in December 2015. Copyright © 2017 Inderscience Enterprises Ltd.